How the 2023 Charitable Giving Report Will Impact Nonprofit Marketing

The Annual Charitable Giving Report reflects the global spirit of giving that has been a driving force behind positive change, uniting individuals, communities, and organizations in a shared commitment to making the world a better place. Yet charitable giving is subject to fluctuations and patterns that can both empower and challenge the very causes it seeks to support.

charitable giving report

Charitable Giving Report

Giving USA: The Annual Charitable Giving Report offers deep insights into the origins and uses of charitable contributions within the United States. For over 60 years, fundraisers, leaders of nonprofit organizations, donors, volunteers, scholars, and those engaged in the philanthropic field have heavily relied upon the comprehensive charitable giving data provided by Giving USA.

Since the year 2000, this research has been carried out by the Indiana University Lilly Family School of Philanthropy. The report’s estimations encompass the entirety of charitable donations directed toward organizations across the entire United States. Instead of fixating on individual entities or specific geographical areas, Giving USA calculates the aggregate charitable contributions by encompassing roughly 53 million households spread throughout America, around 16 million corporations claiming deductions for charitable giving, over a million estates, and approximately 82,000 foundations. The extent of their study also encompasses about 1.1 million charities registered with the IRS, coupled with a cautious estimation of 300,000 religious organizations in America that receive contributions.

Charitable Giving Trends

The Giving USA 2023 report reveals total giving to U.S. charities in 2022 was $500 billion but a decrease from 2021 of 10.5% after adjusting for inflation. Several economic factors contributed to this decline in charitable giving including a double digit decrease in the stock market and a 40-year inflation high of 8%.

Individuals, who make up 64 % of all charitable giving, gave 13.4% less (when adjusted for inflation). This decline is part of a broader trend, as individual giving has been decreasing as a share of total giving over the years.

Nonprofit Tips for a Negative Charitable Giving Trend

When charitable giving is down, donors are often more discerning about where they choose to allocate their funds. They want to ensure that their contributions have a meaningful impact and align with their values. Here are some factors that nonprofit fundraisers and marketers may consider when deciding how to approach the donors during such times:

Focus on Impactful Stories: Share compelling stories of individuals or communities that have benefited from your organization’s work. Personal stories can create an emotional connection and inspire donors to contribute.

Highlight Urgency: Create a sense of urgency by emphasizing time-sensitive needs or campaigns. Limited-time opportunities and clear goals can motivate donors to act quickly.

Transparent Communication: Be open about your organization’s financial situation and the impact of decreased donations. Transparency builds trust and can lead to increased support from donors who understand the challenges you’re facing.

Segmented Messaging: Tailor your messaging to different donor segments based on their interests, giving history, and demographics. Personalized communication can make donors feel valued and understood.

Virtual Engagement: Leverage digital platforms for virtual events, webinars, and online campaigns. Engage with supporters through interactive content like live streams, Q&A sessions, and virtual tours to showcase your organization’s work.

Revisit Fundraising Campaigns: Review your fundraising campaigns and identify areas for improvement. Consider creating new campaigns or reimagining existing ones to capture donors’ attention.

Collaborate and Partner: Collaborate with other nonprofits, businesses, or influencers that share similar goals. Joint efforts can expand your reach and attract new donors.

Show Accountability: Demonstrate how you utilize donations effectively by sharing success stories, project updates, and financial reports. This reassures donors that their contributions are making a difference.

Incentives and Matching Gifts: Offer matching gift opportunities where a donor’s contribution is matched by a third party. Incentives like thank-you gifts or exclusive content can also encourage donations.

Optimize Online Presence: Ensure your website is user-friendly, mobile-responsive, and optimized for donations. Use clear calls-to-action and minimize friction in the donation process.

Social Media Engagement: Engage actively on social media platforms by sharing relevant content, responding to comments, and participating in conversations. Visual content, like infographics and videos, can enhance engagement.

Gratitude and Recognition: Acknowledge and appreciate your donors through personalized thank-you notes, recognition on your website, or special events. Feeling appreciated can foster loyalty and repeat donations.

Demonstrate Adaptability: Highlight how your organization has adapted to challenges, showcasing flexibility and resilience. Donors may be more inclined to support organizations that can navigate tough times effectively.

Feedback and Surveys: Engage donors by seeking their input on your organization’s strategies, impact, and future directions. This involvement can foster a sense of ownership and commitment.

Long-Term Relationships: Focus on building relationships rather than just seeking donations. Engage donors in a meaningful way, keep them informed, and involve them in your organization’s journey.

Remember that it’s crucial to remain sensitive to the challenges your supporters might be facing during tough times as reflected in the negative charitable giving trends. Adapt your strategies with empathy and authenticity to connect with your audience on a deeper level and encourage their continued support.

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